1-7567
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94-1381538
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(Commission File No.)
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(IRS Employer Identification No.)
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□
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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□
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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□
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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□
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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URS CORPORATION | |||
Dated: March 3, 2014
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By:
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/s/ Reed N. Brimhall | |
Reed N. Brimhall | |||
Vice President and Chief Accounting Officer | |||
Exhibit No.
|
Description
|
|
Contacts:
|
||
URS Corporation
Sam Ramraj
Vice President,
Investor Relations
(415) 774-2700
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Sard Verbinnen & Co
Jamie Tully/Delia Cannan
(212) 687-8080
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·
|
Revenues were $11.0 billion.
|
·
|
Generally Accepted Accounting Principles (“GAAP”) Net Income was $247.2 million, or $3.31 per share on a diluted basis.
|
·
|
Cash flow from Operations was $614.2 million.
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·
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Cash earnings per share* (“EPS”) was $4.26.
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·
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Earnings before interest, taxes, depreciation and amortization* (“EBITDA”) was $765.2 million.
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·
|
Book of business at the end of the quarter was $22.8 billion, including backlog of $11.3 billion.
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|
January 3, 2014
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December 28, 2012
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||||||
ASSETS
|
|
|
||||||
Current assets:
|
|
|
||||||
Cash and cash equivalents
|
$ | 283.7 | $ | 314.5 | ||||
Accounts receivable, including retentions of $116.6 and $114.4, respectively
|
1,392.6 | 1,554.8 | ||||||
Costs and accrued earnings in excess of billings on contracts
|
1,521.5 | 1,384.3 | ||||||
Less receivable allowances
|
(65.1 | ) | (69.7 | ) | ||||
Net accounts receivable
|
2,849.0 | 2,869.4 | ||||||
Deferred tax assets
|
35.6 | 67.6 | ||||||
Inventory
|
49.2 | 61.5 | ||||||
Other current assets
|
173.2 | 204.2 | ||||||
Total current assets
|
3,390.7 | 3,517.2 | ||||||
Investments in and advances to unconsolidated joint ventures
|
245.6 | 278.3 | ||||||
Property and equipment, net
|
608.1 | 687.5 | ||||||
Intangible assets, net
|
569.7 | 692.2 | ||||||
Goodwill
|
3,695.6 | 3,721.6 | ||||||
Other long-term assets
|
208.3 | 364.2 | ||||||
Total assets
|
$ | 8,718.0 | $ | 9,261.0 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$ | 44.6 | $ | 71.8 | ||||
Accounts payable and subcontractors payable, including retentions of $29.2 and $32.3, respectively
|
688.3 | 803.5 | ||||||
Accrued salaries and employee benefits
|
507.4 | 558.8 | ||||||
Billings in excess of costs and accrued earnings on contracts
|
233.1 | 289.1 | ||||||
Other current liabilities
|
365.2 | 277.8 | ||||||
Total current liabilities
|
1,838.6 | 2,001.0 | ||||||
Long-term debt
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1,666.9 | 1,992.5 | ||||||
Deferred tax liabilities
|
444.2 | 379.9 | ||||||
Self-insurance reserves
|
127.2 | 129.8 | ||||||
Pension and post-retirement benefit obligations
|
285.7 | 300.9 | ||||||
Other long-term liabilities
|
128.4 | 271.0 | ||||||
Total liabilities
|
4,491.0 | 5,075.1 | ||||||
Commitments and contingencies
|
||||||||
URS stockholders’ equity:
|
||||||||
Preferred stock, authorized 3.0 shares; no shares outstanding
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— | — | ||||||
Common stock, par value $.01; authorized 200.0 shares; 89.1 and 88.9 shares issued, respectively; and 75.0 and 76.8 shares outstanding, respectively
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0.9 | 0.9 | ||||||
Treasury stock, 14.1 and 12.1 shares at cost, respectively
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(588.2 | ) | (494.9 | ) | ||||
Additional paid-in capital
|
3,038.1 | 3,003.9 | ||||||
Accumulated other comprehensive loss
|
(200.3 | ) | (113.2 | ) | ||||
Retained earnings
|
1,830.7 | 1,647.3 | ||||||
Total URS stockholders’ equity
|
4,081.2 | 4,044.0 | ||||||
Noncontrolling interests
|
145.8 | 141.9 | ||||||
Total stockholders’ equity
|
4,227.0 | 4,185.9 | ||||||
Total liabilities and stockholders’ equity
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$ | 8,718.0 | $ | 9,261.0 |
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Three Months Ended
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Year Ended
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||||||||||||||
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January 3,
|
December 28,
|
January 3,
|
December 28,
|
||||||||||||
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2014
|
2012
|
2014
|
2012
|
||||||||||||
|
|
|
|
|
||||||||||||
Revenues
|
$ | 2,660.7 | $ | 2,972.7 | $ | 10,990.7 | $ | 10,972.5 | ||||||||
Cost of revenues
|
(2,564.1 | ) | (2,810.5 | ) | (10,416.0 | ) | (10,294.5 | ) | ||||||||
General and administrative expenses
|
(17.6 | ) | (21.6 | ) | (77.5 | ) | (83.6 | ) | ||||||||
Acquisition-related expenses
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— | — | — | (16.1 | ) | |||||||||||
Equity in income of unconsolidated joint ventures
|
34.5 | 30.8 | 93.6 | 107.6 | ||||||||||||
Operating income
|
113.5 | 171.4 | 590.8 | 685.9 | ||||||||||||
Interest expense
|
(20.3 | ) | (19.7 | ) | (86.1 | ) | (70.7 | ) | ||||||||
Other income (expenses)
|
(3.5 | ) | (3.6 | ) | (7.7 | ) | 0.5 | |||||||||
Income before income taxes
|
89.7 | 148.1 | 497.0 | 615.7 | ||||||||||||
Income tax expense
|
(44.3 | ) | (34.7 | ) | (167.7 | ) | (189.9 | ) | ||||||||
Net income including noncontrolling interests
|
45.4 | 113.4 | 329.3 | 425.8 | ||||||||||||
Noncontrolling interests in income of consolidated subsidiaries
|
(26.2 | ) | (42.8 | ) | (82.1 | ) | (115.2 | ) | ||||||||
Net income attributable to URS
|
$ | 19.2 | $ | 70.6 | $ | 247.2 | $ | 310.6 | ||||||||
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||||||||||||||||
|
||||||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
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$ | 0.26 | $ | 0.95 | $ | 3.35 | $ | 4.18 | ||||||||
Diluted
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$ | 0.26 | $ | 0.95 | $ | 3.31 | $ | 4.17 | ||||||||
Weighted-average shares outstanding:
|
||||||||||||||||
Basic
|
73.6 | 74.5 | 73.9 | 74.3 | ||||||||||||
Diluted
|
74.2 | 74.6 | 74.7 | 74.5 | ||||||||||||
|
||||||||||||||||
Cash dividends declared per share
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$ | 0.21 | $ | 0.20 | $ | 0.84 | $ | 0.80 |
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Three Months Ended
|
Year Ended
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||||||||||||||
|
January 3,
|
December 28,
|
January 3,
|
December 28,
|
||||||||||||
|
2014
|
2012
|
2014
|
2012
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
||||||||||||
Net income including noncontrolling interests
|
$ | 45.4 | $ | 113.4 | $ | 329.3 | $ | 425.8 | ||||||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||||||||||
Depreciation and amortization
|
41.1 | 40.7 | 156.8 | 132.4 | ||||||||||||
Amortization of intangible assets
|
26.6 | 27.4 | 107.4 | 101.2 | ||||||||||||
Write-off of Canadian Notes premium
|
(23.2 | ) | — | (23.2 | ) | — | ||||||||||
Gain on disposal of property and equipment
|
(3.2 | ) | (0.3 | ) | (25.4 | ) | (3.4 | ) | ||||||||
Deferred income taxes
|
37.0 | (19.1 | ) | 73.0 | (16.6 | ) | ||||||||||
Stock-based compensation
|
(3.9 | ) | 11.1 | 31.8 | 43.6 | |||||||||||
Equity in income of unconsolidated joint ventures
|
(34.5 | ) | (30.8 | ) | (93.6 | ) | (107.6 | ) | ||||||||
Dividends received from unconsolidated joint ventures
|
38.3 | 20.8 | 113.0 | 88.7 | ||||||||||||
Changes in operating assets, liabilities and other, net of effects of business acquisitions:
|
||||||||||||||||
Accounts receivable and costs and accrued earnings in excess of billings on contracts
|
343.7 | 35.9 | 364.3 | (92.2 | ) | |||||||||||
Inventory
|
4.4 | 6.2 | 12.2 | 7.0 | ||||||||||||
Other current assets
|
23.6 | (16.3 | ) | 36.0 | (27.0 | ) | ||||||||||
Other long-term assets
|
(141.9 | ) | (5.4 | ) | (200.5 | ) | (62.2 | ) | ||||||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities
|
(99.8 | ) | (64.1 | ) | (219.5 | ) | (13.7 | ) | ||||||||
Billings in excess of costs and accrued earnings on contracts
|
7.7 | 13.0 | (54.5 | ) | (35.2 | ) | ||||||||||
Other long-term liabilities
|
(5.4 | ) | (1.4 | ) | 7.1 | (10.6 | ) | |||||||||
Total adjustments and changes
|
210.5 | 17.7 | 284.9 | 4.4 | ||||||||||||
Net cash from operating activities
|
255.9 | 131.1 | 614.2 | 430.2 | ||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Payments for business acquisitions, net of cash acquired
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— | — | — | (1,345.7 | ) | |||||||||||
Proceeds from disposal of property and equipment
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31.1 | 8.1 | 63.7 | 25.3 | ||||||||||||
Payments in settlement of foreign currency forward contract
|
— | — | — | (1,260.6 | ) | |||||||||||
Receipts in settlement of foreign currency forward contract
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— | — | — | 1,260.3 | ||||||||||||
Investments in unconsolidated joint ventures
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(0.1 | ) | 1.0 | (0.2 | ) | (4.4 | ) | |||||||||
Changes in restricted cash
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(0.3 | ) | 0.1 | 4.3 | 3.9 | |||||||||||
Capital expenditures, less equipment purchased through capital leases and equipment notes
|
(12.8 | ) | (23.6 | ) | (81.0 | ) | (125.4 | ) | ||||||||
Net cash from investing activities
|
17.9 | (14.4 | ) | (13.2 | ) | (1,446.6 | ) |
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Three Months Ended
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Year Ended
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||||||||||||||
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January 3,
|
December 28,
|
January 3,
|
December 28,
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||||||||||||
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2014
|
2012
|
2014
|
2012
|
||||||||||||
Cash flows from financing activities:
|
|
|
|
|
||||||||||||
Borrowings from long-term debt
|
— | — | — | 998.9 | ||||||||||||
Payments on long-term debt
|
(216.9 | ) | (33.6 | ) | (220.5 | ) | (38.0 | ) | ||||||||
Borrowings from revolving line of credit
|
98.8 | 101.6 | 1,028.2 | 661.6 | ||||||||||||
Payments on revolving line of credit
|
(136.9 | ) | (150.0 | ) | (1,124.1 | ) | (583.6 | ) | ||||||||
Net payments under foreign lines of credit and short-term notes
|
(5.5 | ) | (7.8 | ) | (26.6 | ) | (20.5 | ) | ||||||||
Net change in overdrafts
|
0.2 | 50.4 | (54.9 | ) | 54.5 | |||||||||||
Payments on capital lease obligations
|
(4.1 | ) | (4.5 | ) | (18.0 | ) | (14.6 | ) | ||||||||
Payments of debt issuance costs and other financing activities
|
(2.4 | ) | 0.1 | (0.8 | ) | (8.7 | ) | |||||||||
Proceeds from employee stock purchases and exercises of stock options
|
5.6 | 1.2 | 20.2 | 8.9 | ||||||||||||
Distributions to noncontrolling interests
|
(29.8 | ) | (31.9 | ) | (79.0 | ) | (83.8 | ) | ||||||||
Contributions and advances from noncontrolling interests
|
0.5 | — | 0.5 | 2.3 | ||||||||||||
Dividends paid
|
(15.4 | ) | (14.9 | ) | (62.2 | ) | (44.7 | ) | ||||||||
Repurchases of common stock
|
— | — | (93.3 | ) | (40.0 | ) | ||||||||||
Net cash from financing activities
|
(305.9 | ) | (89.4 | ) | (630.5 | ) | 892.3 | |||||||||
Net change in cash and cash equivalents
|
(32.1 | ) | 27.3 | (29.5 | ) | (124.1 | ) | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
1.6 | (2.0 | ) | (1.3 | ) | 2.6 | ||||||||||
Cash and cash equivalents at beginning of period
|
314.2 | 289.2 | 314.5 | 436.0 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 283.7 | $ | 314.5 | $ | 283.7 | $ | 314.5 | ||||||||
|
||||||||||||||||
Supplemental information:
|
||||||||||||||||
Interest paid
|
$ | 37.2 | $ | 37.7 | $ | 83.9 | $ | 64.5 | ||||||||
Taxes paid
|
$ | 12.0 | $ | 57.1 | $ | 101.3 | $ | 150.6 | ||||||||
|
||||||||||||||||
Supplemental schedule of non-cash investing and financing activities:
|
||||||||||||||||
Equipment acquired with capital lease obligations and equipment note obligations
|
$ | 18.3 | $ | 11.7 | $ | 54.3 | $ | 27.9 | ||||||||
Cash dividends declared but not paid
|
$ | 18.3 | $ | 16.7 | $ | 18.3 | $ | 16.7 |
|
|
Year Ended
|
|||||||||
|
|
January 3, 2014
|
December 28, 2012
|
||||||||
(In millions, except per share data)
|
|
|
|||||||||
Cash EPS
|
$ | 4.26 | $ | 5.06 | |||||||
Intangible amortization expense, net of tax(1)
|
(0.95 | ) | (0.89 | ) | |||||||
|
Diluted EPS
|
$ | 3.31 | $ | 4.17 | ||||||
|
|
||||||||||
_____________
|
|||||||||||
(1) |
Amounts are net of tax effects of $0.49 and $0.46 for the years ended January 3, 2014 and December 28, 2012, respectively.
|
||||||||||
|
|
|
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|
||||||
|
|
Fiscal Year Ending on
January 2, 2015
|
|||||||
(In millions, except per share data)
|
Lower Range
|
Upper Range
|
|||||||
Cash EPS
|
$ | 4.13 | $ | 4.43 | |||||
Intangible amortization expense, net of tax(1)
|
(0.93 | ) | (0.93 | ) | |||||
|
Diluted EPS
|
$ | 3.20 | $ | 3.50 | ||||
|
|
||||||||
_____________
|
|||||||||
(1)
|
Amounts are net of tax effects of $0.46.
|
|
Year Ended
|
|||||||
|
January 3, 2014
|
December 28, 2012
|
||||||
(In millions)
|
|
|
||||||
EBITDA
|
$ | 765.2 | $ | 804.8 | ||||
Interest expense
|
(86.1 | ) | (70.7 | ) | ||||
Income tax expense
|
(167.7 | ) | (189.9 | ) | ||||
Depreciation and amortization
|
(156.8 | ) | (132.4 | ) | ||||
Amortization of intangible assets
|
(107.4 | ) | (101.2 | ) | ||||
Net income attributable to URS
|
$ | 247.2 | $ | 310.6 | ||||
|
||||||||
|
(In millions)
|
Infrastructure &
Environment
|
Federal
Services
|
Energy &
Construction
|
Oil & Gas
|
Total
|
|||||||||||||||
As of January 3, 2014
|
|
|
|
|
|
|||||||||||||||
Backlog
|
$ | 2,890.0 | $ | 2,364.4 | $ | 5,584.0 | $ | 464.3 | $ | 11,302.7 | ||||||||||
Option years
|
146.2 | 2,103.6 | 1,706.5 | — | 3,956.3 | |||||||||||||||
Indefinite delivery contracts
|
3,182.8 | 3,150.2 | 131.0 | 1,085.5 | 7,549.5 | |||||||||||||||
Total book of business
|
$ | 6,219.0 | $ | 7,618.2 | $ | 7,421.5 | $ | 1,549.8 | $ | 22,808.5 | ||||||||||
|
||||||||||||||||||||
As of December 28, 2012
|
||||||||||||||||||||
Backlog
|
$ | 3,028.4 | $ | 3,476.9 | $ | 5,947.1 | $ | 823.8 | $ | 13,276.2 | ||||||||||
Option years
|
197.3 | 2,728.1 | 2,056.8 | — | 4,982.2 | |||||||||||||||
Indefinite delivery contracts
|
2,572.4 | 3,238.7 | 236.0 | 611.7 | 6,658.8 | |||||||||||||||
Total book of business
|
$ | 5,798.1 | $ | 9,443.7 | $ | 8,239.9 | $ | 1,435.5 | $ | 24,917.2 |
|
January 3,
|
December 28,
|
||||||
(In millions)
|
2014
|
2012
|
||||||
Backlog by market sector:
|
|
|
||||||
Federal
|
$ | 4,891.6 | $ | 6,546.5 | ||||
Infrastructure
|
2,683.2 | 2,957.6 | ||||||
Oil & Gas
|
1,102.9 | 1,461.3 | ||||||
Power
|
1,338.7 | 1,416.1 | ||||||
Industrial
|
1,286.3 | 894.7 | ||||||
Total backlog
|
$ | 11,302.7 | $ | 13,276.2 |
|
Three Months Ended
|
Year Ended
|
||||||||||||||
(In millions)
|
January 3,
|
December 28,
|
January 3,
|
December 28,
|
||||||||||||
2014
|
2012
|
2014
|
2012
|
|||||||||||||
Revenues
|
|
|
|
|
||||||||||||
Infrastructure & Environment
|
$ | 924.7 | $ | 941.0 | $ | 3,758.0 | $ | 3,792.1 | ||||||||
Federal Services
|
486.6 | 603.5 | 2,263.0 | 2,721.6 | ||||||||||||
Energy & Construction
|
742.3 | 853.0 | 2,911.0 | 3,138.1 | ||||||||||||
Oil & Gas (1)
|
535.9 | 605.4 | 2,208.2 | 1,475.1 | ||||||||||||
Inter-segment eliminations
|
(28.9 | ) | (30.2 | ) | (149.5 | ) | (154.4 | ) | ||||||||
Total revenues
|
$ | 2,660.6 | $ | 2,972.7 | $ | 10,990.7 | $ | 10,972.5 | ||||||||
Operating income (loss)
|
||||||||||||||||
Infrastructure & Environment
|
$ | 52.2 | $ | 45.3 | $ | 214.1 | $ | 220.9 | ||||||||
Federal Services
|
43.1 | 31.8 | 268.5 | 249.3 | ||||||||||||
Energy & Construction
|
54.7 | 86.5 | 175.8 | 254.2 | ||||||||||||
Oil & Gas (1)
|
(18.9 | ) | 29.4 | 9.9 | 61.2 | |||||||||||
Corporate
|
(17.6 | ) | (21.6 | ) | (77.5 | ) | (99.7 | ) | ||||||||
Total operating income
|
$ | 113.5 | $ | 171.4 | $ | 590.8 | $ | 685.9 |
(1)
|
The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
|
(In millions)
|
Federal
|
Infrastructure
|
Oil and Gas
|
Power
|
Industrial
|
Total
|
||||||||||||||||||
Three months ended January 3, 2014
|
|
|
|
|
|
|
||||||||||||||||||
Infrastructure & Environment
|
$ | 98.1 | $ | 429.0 | $ | 143.5 | $ | 66.4 | $ | 172.6 | $ | 909.6 | ||||||||||||
Federal Services
|
486.1 | — | — | — | — | 486.1 | ||||||||||||||||||
Energy & Construction
|
192.8 | 94.2 | 150.4 | 183.1 | 112.2 | 732.7 | ||||||||||||||||||
Oil & Gas
|
— | — | 532.3 | — | — | 532.3 | ||||||||||||||||||
Total
|
$ | 777.0 | $ | 523.2 | $ | 826.2 | $ | 249.5 | $ | 284.8 | $ | 2,660.7 | ||||||||||||
|
||||||||||||||||||||||||
Year ended January 3, 2014
|
||||||||||||||||||||||||
Infrastructure & Environment
|
$ | 562.3 | $ | 1,647.4 | $ | 559.4 | $ | 247.6 | $ | 665.3 | $ | 3,682.0 | ||||||||||||
Federal Services
|
2,261.1 | — | — | — | — | 2,261.1 | ||||||||||||||||||
Energy & Construction
|
896.1 | 288.9 | 484.9 | 725.5 | 469.4 | 2,864.8 | ||||||||||||||||||
Oil & Gas
|
— | — | 2,182.8 | — | — | 2,182.8 | ||||||||||||||||||
Total
|
$ | 3,719.5 | $ | 1,936.3 | $ | 3,227.1 | $ | 973.1 | $ | 1,134.7 | $ | 10,990.7 | ||||||||||||
|
||||||||||||||||||||||||
Three months ended December 28, 2012
|
||||||||||||||||||||||||
Infrastructure & Environment
|
$ | 169.5 | $ | 378.7 | $ | 153.5 | $ | 51.6 | $ | 173.0 | $ | 926.3 | ||||||||||||
Federal Services
|
603.3 | — | — | — | — | 603.3 | ||||||||||||||||||
Energy & Construction
|
233.7 | 62.8 | 102.3 | 342.4 | 102.4 | 843.6 | ||||||||||||||||||
Oil & Gas (1)
|
— | — | 599.5 | — | — | 599.5 | ||||||||||||||||||
Total
|
$ | 1,006.5 | $ | 441.5 | $ | 855.3 | $ | 394.0 | $ | 275.4 | $ | 2,972.7 | ||||||||||||
|
||||||||||||||||||||||||
Year ended December 28, 2012
|
||||||||||||||||||||||||
Infrastructure & Environment
|
$ | 670.1 | $ | 1,550.1 | $ | 552.5 | $ | 209.8 | $ | 700.5 | $ | 3,683.0 | ||||||||||||
Federal Services
|
2,720.8 | — | — | — | — | 2,720.8 | ||||||||||||||||||
Energy & Construction
|
1,044.1 | 241.3 | 288.9 | 1,094.6 | 430.6 | 3,099.5 | ||||||||||||||||||
Oil & Gas (1)
|
— | — | 1,469.2 | — | — | 1,469.2 | ||||||||||||||||||
Total
|
$ | 4,435.0 | $ | 1,791.4 | $ | 2,310.6 | $ | 1,304.4 | $ | 1,131.1 | $ | 10,972.5 |
(1)
|
The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
|